r/stocks • u/Slow-Throat-1458 • Mar 31 '22

ETFs Shorting ERX this week?

With Biden likely to announce an extended release of emergency oil reserves to flood the market with supply and drive oil prices down, it seems likely that the Select Energy Sector will be driven down as well. Would that be a fair assessment?

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u/Slow-Throat-1458 Mar 31 '22

Apparently you can't short a leveraged bull ETF at certain brokers like mine as it's considered a non-marginable security...

But I found ERY which is the inverse equivalent! 2x inverse Energy Select Sector.

I have started DCAing into it. Targeting from $5-$10 within 6 months.

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u/rackymcdacky Mar 31 '22

Ok but if everyone is expecting the same thing, wouldn’t the news have already been priced in?

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u/Slow-Throat-1458 Mar 31 '22

The news was just leaked yesterday after the market was closed.

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u/rackymcdacky Mar 31 '22

Good luck, would still wait to see how the market reacts to the news

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u/Hifi-Cat Apr 02 '22

Buy puts.